STRAIGHT CURVE IDEAS PVT. LTD.,KOLKATA vs. I.T.O., WARD - 23(2), KOLKATA

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ITA 2722/KOL/2025Status: DisposedITAT Kolkata13 July 2026AY 2012-20133 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessee disclosed all transactions in its books of account, the charge of concealment of income was incorrect. Disagreement by the AO with entries in the books does not make the assessee liable for penalty under Section 271(1)(c).

What were the facts?

The assessee filed its return of income, and the Assessing Officer (AO) reopened the case, adding Rs. 8,00,000/- on account of accommodation entry. The AO initiated penalty proceedings under Section 271(1)(c) for concealment of income, which was confirmed by the CIT(A).

What were the issues?

Whether penalty under Section 271(1)(c) can be levied when transactions are disclosed in books but disagreed with by the AO, and if such disclosure amounts to concealment of income.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH: KOLKATA

Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

आयकर अपील�य अ�धकरण, कोलकाता पीठ “डी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH: KOLKATA �ी राजेशकुमार, लेखा सट�य एवं �ी �द�प कुमार चौबे, �या�यक सद�यके सम� [Before Shri Rajesh Kumar, Accountant Member&Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 2722/Kol/2025 Assessment Year: 2012-13 Straight Curve Ideas Pvt. Ltd. Vs. ITO, Ward-23(2), Hooghly

(PAN: AAJCS 6735 L) ( अपीलाथ� ) Respondent / ��यथ� Appellant / Date of Hearing / सुनवाई 16.06.2026 क� �त�थ Date of Pronouncement/ 13.07.2026 आदेश उ�घोषणा क� �त�थ For the Appellant/ Shri N.S. Saini, AR �नधा�रती क� ओर से Priyanka Salarpuria, AR For the Respondent/ Shri Dheeraj, JCIT, Sr. DR राज�व क� ओर से

ORDER / आदेश Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 11.10.2025 for the AY 2012-13. 2. The only issue raised by the assessee is against the confirmation of penalty by the Ld. CIT(A) of Rs. 2,47,200/- as imposed by the AO u/s 271(1)(c ) of the Act .

2 I.T.A. No.2722/Kol/2025 Assessment Year: 2012-13 Straight Curve Ideas Pvt. Ltd. 3. Facts in brief are that the assessee filed return of income on 29.09.2012 declaring an income of Rs. 24,310/-. The case of the assessee was reopened and AO added Rs. 8,00,000/- on account of accommodation entry to the income of the assessee. The AO accordingly initiated penalty proceedings u/s 271(1) (c ) in the assessment order and issued notice dated 28.12.2018 for concealment of income. Thereafter the AO issued show cause notice which was replied by the assessee. Finally the AO treated the said amount as concealed income of the assessee and thus levied penalty. The Ld. CIT(A) confirmed the order of AO.

4.

We have heard the rival contentions and perused the material on record. We find that in this case the AO has made addition on account of accommodation entry. We note that the assessee has not concealed any particular of income as the assessee has duly disclosed all the transactions in the books of account. Therefore, the charge of AO is that the assessee has concealed the particular of income is not correct. It is settled position that where the assessee has shown the entries in the books of account with which the AO may not agree that same cannot be treated as liable for penalty proceedings u/s 271(1)(c ). The case of the assessee squarely covered by the decision of Hon’ble Apex Court in the case of CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158 (SC). Therefore, we set aside the order of Ld. CIT(A) and direct the AO to delete the penalty. In the result, the appeal of the assessee is allowed. 5.

Order is pronounced in the open court on 13th July, 2026. Sd/- Sd/- (Pradip Kumar Choubey /�द�प कुमार चौबे) (Rajesh Kumar/राजेश कुमार) Judicial Member/�या�यक सद�य Accountant Member/लेखा सद�य Dated: 13th July, 2026 SM, Sr. PS

3 I.T.A. No.2722/Kol/2025 Assessment Year: 2012-13 Straight Curve Ideas Pvt. Ltd.

Copy of the order forwarded to: 1. Appellant- Straight Curve Ideas Pvt. Ltd., 16, Netaji Subhas Road, 4th Floor, Kolkata-700001 2. Respondent – ITO, Ward-23(2), Hooghly 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata

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